Number
241383
Version
SUBSTITUTE 1
Reference
170188, 181331, 181332, 241324
Sponsor
ALD. BAUMAN AND JACKSON
Title
Substitute resolution relating to authorizing up to $300,000 of 2025 Contingent Borrowing to fund the Housing Infrastructure Preservation Fund capital account.
Analysis
This resolution authorizes the use of 2025 Contingent Borrowing to fund the Housing Infrastructure Preservation capital account with $300,000.
Body
Whereas, The Housing Infrastructure Preservation Fund was created in 2010 to provide funds for restoring, rehabilitating or mothballing City-owned properties that have been deemed historic or too valuable to the character of the surrounding neighborhood to demolish, but which are unlikely to be restored by private purchasers; and
Whereas, Since 2011, the City has renovated 60 properties using the Housing infrastructure Preservation Fund; and
Whereas, Since 2011, 56 rehabilitated properties have been sold and returned to the City’s tax rolls, producing over $80,000 in annual property tax revenue; and
Whereas, The Concentrated Blight Elimination capital account was created in 2014; and
Whereas, Capital funding in the Concentrated Blight Elimination account is combined with operating funds in the Department of Neighborhood Services and the Department of Public Works budgets to raze and deconstruct structures; and
Whereas, Since 2017, residential (one- to 4-family) demolitions in Milwaukee have exceeded residential construction by 258 dwelling units; and
Whereas, Common Council File Number 170188, passed on November 7, 2017, requires the deconstruction of Milwaukee’s older and more historic primary dwelling structures when removal is required; and
Whereas, Common Council File Number 181332, passed on January 14, 2019, set aside $1.2 million in the Concentrated Blight Elimination capital account for the deconstruction of structures in a manner consistent with s. 218.10 of the Milwaukee Code of Ordinances; and
Whereas, Common Council File Number 181331, adopted on January 14, 2019, created a footnote in the Code of Ordinances stating that the enforcement of the code provisions relating to deconstruction of one- to 4-unit residential structures would be stayed until March 1, 2020; and
Whereas, The Common Council has annually adopted ordinances extending the stay of the enforcement of the code provisions relating to deconstruction of one- to 4-unit residential structures; and
Whereas, The most recent stay of enforcement will expire on March 1, 2025; and
Whereas, The majority of funds set aside by Common Council File Number 181332 remain unspent; and
Whereas, An amendment to the 2025 Proposed Budget (Amendment 35) that would provide $150,000 for the Housing Infrastructure Preservation Fund capital account and decrease funding for the Concentrated Blight Elimination capital account by $150,000 was heard by the Finance & Personnel Committee on October 31, 2024; and
Whereas, It was suggested that existing funds in the Concentrated Blight Elimination capital account could be transferred to the Housing Infrastructure Preservation Fund to avoid impacting funding in 2025 for the Concentrated Blight Elimination capital account; and
Whereas, Previously budgeted funds cannot be transferred by amendment; and
Whereas, Amendment 35 was withdrawn from consideration at the Common Council’s Budget Adoption meeting on November 8, 2024 in order to properly transfer funds from the Concentrated Blight Elimination capital account to the Housing Infrastructure Preservation Fund capital account; and
Whereas, The City Attorney has determined that the transfer of funds between the Concentrated Blight Elimination capital account and the Housing Infrastructure Preservation Fund is not allowed; and
Whereas, If $300,000 of spending authority in the Concentrated Blight Elimination capital account is suspended, the issuance of $300,000 of Contingent Borrowing would be budget-neutral; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that up to $300,000 of Contingent Borrowing for the Housing Infrastructure Preservation Fund capital account is authorized to be issued; and be it
Further Resolved, That the debt may be issued as Notes pursuant to Resolution Number 241324 (including direct loan notes), and that such debt shall be a purpose of Contingent Borrowing - Unallocated in Exhibit A of the resolution, including refunding of direct loan notes if the debt is temporarily issued as direct loan notes; and be it
Further Resolved, That the direct loan notes may be issued by the Comptroller without approval of the Public Debt Commission; and be it
Further Resolved, That $300,000 in additional funds are appropriated to the Housing Infrastructure Perseveration Fund capital account number 0339-9990-R999-UR04820000A; and, be it
Further Resolved, That the City Comptroller is authorized and directed to establish the necessary accounts and accounting procedures to carry out the intent of this resolution.
Requestor
Drafter
LRB 180419-1
Kathleen Brengosz
12/16/2024